I have a financial question?

Question

What would be the nominal annual rate of return and effective annual rate of return if I had perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2, and its current price is $80.

Answer 1

With a quarterly dividend of $2, you'd get $8 a year in dividends. If the current price is $80, then the dividend rate is 10%. Par value has nothing to do with it.

Since this obviously is a homework question, didn't your textbook explain how to do this?